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Service Tax Rate increased to 15% w.e.f 1.6.2016
(Krishi Kalyan Cess Added @ 0.5%)
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Normal Charge on Senior Advocate removed,now Senior and Other Advocates treated in same manner w.e.f 6.6.2016
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Change in Abatement Rates w.e.f 1.6.2016
AC Stage Carriage Bus is now taxable(removed from Negative List) and there is 60% Abatement (40% Taxable)
| Transport of Passengers | Old Rate | New Rate |
| Motor Cab | 40% | 40% |
| Radio Taxi | 40% | 40% |
| Stage Carriage (AC Bus) | Exempt | 40% |
| Stage Carriage (Non AC Bus) | Exempt | Exempt |
However,Non AC Stage Carriage (Non AC Bus) continue to be exempt (Notification 9/2016)
Change in Abatement Rates w.e.f 1.4.2016
| Name of Service | TAXABLE RATES | |
| Old Rate | New Rate | |
| Goods Transport Agency (Road) | ||
| Normal Cases | 30% | 30% |
| For Supply of Old Household Items | 30% | 40% |
| Goods Transport by Raiways | ||
| by Private Railways | 30% | 40% |
| by Government Railways | 30% | 30% |
| Chit Fund | 0% | 30% |
| Construction Services | ||
| For Residential unit less than 2000 sq feet + Price Charged > 1 cr | 25% | 30% |
| Other Cases | 30% | 30% |
| Tour Operator Service | ||
| Booking Accomodation | 10% | 10% |
| Package Tour Service | 25% | 30% |
| Other Cases | 40% | 30% |
(Note:- These are taxable Rates,i.e.Rates after claiming abatement)
Change in Conditions for Abatement w.e.f 1.4.2016
Now Cenvat of Input Services can be taken in case of following Services also
- Transportation of Goods by Rail
- Transportation of Passengers by Rail
- Transportation of Goods in a Vessel.
Quarterly Payment of Service Tax
Earlier Quarterly Payement of Service tax waas available only for Individual and Partnership
Now it is available to
- Individual
- Partnership
- HUF
- One Person Company (OPC) whose taxable turnover from all premises is upto 50 lacs
(Note:- 50 lac limit is only for OPC,Not for Individual,Partnerhip,HUF)
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Payment of Service Tax on Receipt Basis
Normally,Service tax is payable on Bill or Payement which ever is earlier
However,in case of Individual,Partnerhip,HUF,One Person Company (OPC)
IF taxable turnover from all premises is upto 50 lcs in previous year,
then Service tax payable on receipt basis upto 50 lacs in Current Year
(50 lacs limit is for all 2 in this case, HUF not eligible for Payement of Service tax on Receipt Basis)
Special Rates for Single Annuity Life Insurance Plans
New Amendment
For Single Premium Anuity Insurance Policies,
Insurance Premium is to be paid only in first year and not after that
In this case,
Rate prescribed are 1.4% of Total Premum Charged++Swachh Bharat Cess+Krishi Kalyan Cess
i.e. 1.5%
|
Year |
% of base fare (OLD RATE) |
Effective Rate of Service tax |
Effective Rate of Swachh Bharat Cess |
Effective Rate of Krishi Kalyan Cess |
Total Rate of Service Tax |
|
First Year (Single Premium) |
N/A |
1.4% |
0.10% |
0.10% |
1.5% |
|
Next Year |
N/A |
N/A |
N/A |
N/A |
N/A |
This is applicable only where the amount allocated for investment or savings on
behalf of policy holder is not intimated to the policy holder at the time of providing of service
New Annual Return For Service Providers
This return to be filed in addition to Normal Return whose due date will be 30 November
(Learn More)
Interest on Late Payment of Service Tax
New Interest Rates Applicable from 14.5.2016
|
Case |
Rate of Interest |
|
Service Tax collected from customer but not deposited to Government |
24%* |
|
Other Cases (Amount not yet paid by Customer) |
15%* |
* There is 3% concession if
value of taxable service provided in previous financial year does not exceed Rs 60 lakh
(Learn More)
